Security Federal Corporation announces increase in quarterly and six month earnings
July 31, 2017
Security Federal Corporation (OTCBB:SFDL), the holding company for Security Federal Bank, announced results for the quarter and six month periods ended June 30, 2017. Net income available to common shareholders increased $22,000 or 1.5% to $1.5 million or $0.50 per common share (basic) for the quarter ended June 30, 2017, compared to $0.49 per common share (basic) for the quarter ended June 30, 2016.
For the six months ended June 30, 2017, net income available to common shareholders increased $43,000 or 1.4% to $3.1 million or $1.06 per common share (basic), compared to $1.04 per common share (basic) for the same period in 2016. The increase in net income available to common shareholders for the six month period was primarily the result of increases in net interest income and non-interest income combined with the absence of preferred stock dividends. These items were partially offset by an increase in non-interest expense.
Net interest income was $12.4 million for the six months ended June 30, 2017, an increase of $69,000 from the same period in 2016. The increase in net interest income was primarily the result of average earning assets increasing by $24.8 million. The Company’s net interest spread was 3.24% for the six months ended June 30, 2017.
Non-interest income increased $138,000 or 4.2% to $3.4 million for the six months ended June 30, 2017 from $3.3 million for the same period in 2016. The increase was primarily the result of a $217,000 or 52.7% increase in net gain on sale of investment securities and a $120,000 or 29.9% increase in gain on sale of loans. These increases were partially offset by a $265,000 decrease in grant income. The Company received a Bank Enterprise Award (“BEA”) grant from the Unites States Department of the Treasury (“US Treasury”) in 2016 in recognition of its continued commitment to community development in economically distressed areas. Our commitment to these areas has continued in 2017 and we anticipate receiving another BEA; however, based on timing changes made by the US Treasury, we do not expect to receive the award until the third quarter of 2017 and we cannot be assured that new BEA will equal the prior grant award.
Total deposits increased $37.3 million or 5.7% to $691.4 million at June 30, 2017 compared to $654.1 million at December 31, 2016. Checking and savings deposits accounted for the majority of the growth, increasing $28.0 million during 2017.
Net loans receivable increased $240,000 or 0.1% to $360.0 million at June 30, 2017 from $359.7 million at December 31, 2016. Total assets increased $44.2 million or 5.4% to $856.9 million at June 30, 2017 from $812.7 million at December 31, 2016, primarily due to a $40.9 million or 10.6% increase in investment and mortgage-backed securities.
Security Federal Bank has 15 full service branch locations in Aiken, Ballentine, Clearwater, Columbia, Graniteville, Langley, Lexington, North Augusta, Wagener and West Columbia, South Carolina and Evans, Georgia. A full range of financial services, including trust and investments, are provided by the Bank and insurance services are provided by the Bank’s wholly owned subsidiary, Security Federal Insurance, Inc.
